Compass price target raised to $5 from $3 at Needham

Needham raised the firm’s price target on Compass to $5 from $3 and keeps a Buy rating on the shares. FY24 should mark the easing of the housing market headwinds, as a more dovish interest rate environment should help housing affordability, the analyst tells investors in a research note. If the housing market is able to surprise to the upside in FY24, it could have a significant impact on estimates and also the stock’s multiple given the negative sentiment towards the broader digital real estate coverage, Needham added.